Unfortunately in today’s world it does not seem that there are much goodness and mercy left. You would think as a consultant for nonprofits I would be surrounded by all like minded people that in short are all seeking to make a difference in others’ lives and doing everything for the right reason.
Now more than ever I feel as if I have to be on constant guard as I am approached by individuals, all that tout they want to take up the banner of “doing good” and helping others. Yea, right!
As I talk to others and peel away the layers seeking to really understand what the person’s motivation might be, in many cases I discover quickly that it is not all about helping others, but helping themselves as well.
Let’s look at a case in point that is known nationally. Most of us at some point have seen TV commercials advertised by various chain office supply stores encouraging you to help the kids going back to school with school supplies because they can’t afford to buy them.
The local stores in turn ask their customers to buy that extra pack of paper or box of pencils and donate them to the school of their choice. On the face there is nothing wrong with school teachers getting help but we tend to forget the store is making a sale. All that warm and fuzzy advertising is just that, advertising.
Likewise, there several different websites like http://www.iloveschools.com/ and http://www.donorschoose.org/ that have as a goal to connect teachers with donors. Again, there is nothing wrong with that! How the programs generally work is that teachers post a wish list and then donors can go and make purchases via the site to help with that wish list that was posted. The donor gets a donation receipt, the teacher gets the item and the website….well the website or I should say the managers of the site get a commission on the sale.
Again, is good being done, absolutely! However, if there were no profit potential would the site be online because it was the right thing to do or would the store care about the school children needing school supplies?
I’ll let you answer this question in your own mind.
Showing posts with label nonprofit fundraising. Show all posts
Showing posts with label nonprofit fundraising. Show all posts
Friday, July 30, 2010
Wednesday, January 27, 2010
How Do You Connect With Your Donor?
I am often struck at the lack of conversation most nonprofits have with their donors or want-to-be donors. How often have you heard the old cliché: "The only time I hear from ‘X’ is when they want money!" This begs the question, Why?
The nonprofit arena is busy and busy being busy. Nonprofits for the most part are what I like to call "hidden in plain sight" bumping along day in and day out.
Likewise, every day we as individuals fall into our routine. It sometimes seems impossible to do something beyond our normal, and we all have a million excuses. How many times have you heard someone say: I can't do that because I don't have enough time! For whatever reason we act like this precious thing we call "time" is something we actually have no control over. Many also have lost touch of the simple fact that failing to "act differently" is our own fault and not due to forces beyond our control.
Hold On Change Is Coming!
Donors give nonprofits daily something of great value! Sometimes it might be money, other times it might be volunteering their time. On some occasions it actually goes deeper and a person extends to the nonprofit a part of their heart.
In all these cases nonprofits need to understand that they do not deserve this just because they are doing something good that helps others in society. Nonprofits need to understand the fact that gifts are given as a response out of a genuine sense of compassion and responsibility to others that the donor feels, not because the nonprofit is the most deserving.
Let's dig deeper! If you went to a fast food restaurant and placed your order and the person took your money but did not give you your food in return, then you would be more than just a little upset; you’d feel cheated.
So, what are you giving back to your donors for the money they give you? A receipt? If the fast food restaurant just gives you a receipt will you be satisfied then?
Nonprofits are so stuck in a rut that they forget that donors are people and that people need to feel a whole range of emotions in order to be complete. It would not be normal for a person to be happy or sad all the time but we as people need more!
Wake up! It is time for you to literally excite the senses.
See: Yes, that is right you have to get out from behind your desk and out of the comfy confines of your safe office. It feels good to be safe doesn't it? As a nonprofit executive you do not want to feel rejected. It is hard to ask for money too isn't it? Ok, I get all this but I am not asking you to jump out go ask for money. I am asking you to go see your donors. Be on your best behavior and take a gift. Not something big but something they can place on their desk to remember your organization.
Hear: When someone says the words, I hear ya! Do they really? Most of us are blessed with having two ears and one mouth. It was designed that way for a reason. You should double your efforts to hear what your donor has to say and talk less. Also, we as a society spend a lot of time tuning in and tuning out the messages we are bombarded with daily. What messages are you sending as a nonprofit? What is the donor actually hearing? Are they deafened by the silence?
Smell: It might seem odd to have nonprofits thinking about how they smell but if you will bear with me for a moment! Do you know how a bakery smells, the smell of flowers, or wood burning on a fire? What can you do to excite the sense of smell for your donor? What do you think the reaction a donor would have if perhaps a child who was served by a nonprofit made the donor something out of PlayDoh? Do you remember playing with PlayDoh as a child, remember the smell?
Taste: No doubt you have heard the proverb: “The way to a man’s heart is through his stomach!” While this might be a little over simplified I have never heard of a donor complain that they are getting too much candy or goodies from a nonprofit they support.
Feel: Do you really know how your donor feels about your nonprofit? What motivates their support and interest in the service you provide. Taking just a few minutes to harvest this important nugget will benefit your organization for years to come.
These are just a few ways you might consider to better connect with your donor. But remember, ultimately you will be judged by your actions rather than your words. It is up to you to connect with your donor, and it is not the responsibility of the donor to find you!
To learn more visit: www.nonprofitexpert.com
The nonprofit arena is busy and busy being busy. Nonprofits for the most part are what I like to call "hidden in plain sight" bumping along day in and day out.
Likewise, every day we as individuals fall into our routine. It sometimes seems impossible to do something beyond our normal, and we all have a million excuses. How many times have you heard someone say: I can't do that because I don't have enough time! For whatever reason we act like this precious thing we call "time" is something we actually have no control over. Many also have lost touch of the simple fact that failing to "act differently" is our own fault and not due to forces beyond our control.
Hold On Change Is Coming!
Donors give nonprofits daily something of great value! Sometimes it might be money, other times it might be volunteering their time. On some occasions it actually goes deeper and a person extends to the nonprofit a part of their heart.
In all these cases nonprofits need to understand that they do not deserve this just because they are doing something good that helps others in society. Nonprofits need to understand the fact that gifts are given as a response out of a genuine sense of compassion and responsibility to others that the donor feels, not because the nonprofit is the most deserving.
Let's dig deeper! If you went to a fast food restaurant and placed your order and the person took your money but did not give you your food in return, then you would be more than just a little upset; you’d feel cheated.
So, what are you giving back to your donors for the money they give you? A receipt? If the fast food restaurant just gives you a receipt will you be satisfied then?
Nonprofits are so stuck in a rut that they forget that donors are people and that people need to feel a whole range of emotions in order to be complete. It would not be normal for a person to be happy or sad all the time but we as people need more!
Wake up! It is time for you to literally excite the senses.
See: Yes, that is right you have to get out from behind your desk and out of the comfy confines of your safe office. It feels good to be safe doesn't it? As a nonprofit executive you do not want to feel rejected. It is hard to ask for money too isn't it? Ok, I get all this but I am not asking you to jump out go ask for money. I am asking you to go see your donors. Be on your best behavior and take a gift. Not something big but something they can place on their desk to remember your organization.
Hear: When someone says the words, I hear ya! Do they really? Most of us are blessed with having two ears and one mouth. It was designed that way for a reason. You should double your efforts to hear what your donor has to say and talk less. Also, we as a society spend a lot of time tuning in and tuning out the messages we are bombarded with daily. What messages are you sending as a nonprofit? What is the donor actually hearing? Are they deafened by the silence?
Smell: It might seem odd to have nonprofits thinking about how they smell but if you will bear with me for a moment! Do you know how a bakery smells, the smell of flowers, or wood burning on a fire? What can you do to excite the sense of smell for your donor? What do you think the reaction a donor would have if perhaps a child who was served by a nonprofit made the donor something out of PlayDoh? Do you remember playing with PlayDoh as a child, remember the smell?
Taste: No doubt you have heard the proverb: “The way to a man’s heart is through his stomach!” While this might be a little over simplified I have never heard of a donor complain that they are getting too much candy or goodies from a nonprofit they support.
Feel: Do you really know how your donor feels about your nonprofit? What motivates their support and interest in the service you provide. Taking just a few minutes to harvest this important nugget will benefit your organization for years to come.
These are just a few ways you might consider to better connect with your donor. But remember, ultimately you will be judged by your actions rather than your words. It is up to you to connect with your donor, and it is not the responsibility of the donor to find you!
To learn more visit: www.nonprofitexpert.com
Monday, September 28, 2009
Donor Retention and Recognition
“The donor” is and should be seen as the most important person for any nonprofit organization, period! However, lately donors are treated more like a commodity than a treasured artifact.
How a nonprofit treats their donors will have a significant impact on the organization’s ability to raise money and grow.
As a consultant for nonprofits I see way too often donors that are ignored with no plan in place to make them feel special or needed.
The phrase “you’re my friend” is one of the most touted sayings in political circles, especially when a contribution is being pursued. Likewise, when the salutation, “Dear Friend” or “Dear Supporter,” is used by a nonprofit, that in my opinion is impersonal and in some respects insulting! If you want a contribution you have to start by addressing me by my name and treat me like an individual versus someone in line at the drive thru.
How much do you really know about your donor? Have you taken the time to ask them what they like or even dislike concerning your program? How often do you communicate with your donor and NOT ask for money?
All these questions are just the start to building a retention program that works!
As best as I can tell, there are few free programs or informational pages on the internet that really share the practical secrets to help nonprofits retain donors. So, once again, I’ll try to tackle the subject and give you the information you need, NOW!
Why does a donor stop giving? Over 50% of all donors stop giving because of three simple yet profound reasons.
Approximately 25% of donors stop giving because they find another cause they think is more deserving. This begs the question then is your message on point? Is your message consistent? Does it resonate with donors or are you doing something that people really don’t support? Is what you do effective year round?
Unfortunately over 20% of donors that stop giving simply cannot afford to support charities at that time.
Lastly and most amazing is that over 10% have totally forgotten they supported the charity in the first place. This last point for me further emphasizes the fact that if your nonprofit’s method if getting donations is largely based on simple emotional appeals then eventually the well will run dry and people will literally forget you.
The message your nonprofit gives to donors must be one that is lasting and not just tell of a need but helps truly show that with support they can make things better long term. The ultimate goal would be changing or affecting a life forever.
So how do you keep donors happy? First a donor needs to feel appreciated, welcomed and wanted. Likewise, most people that give money want to know the results of their actions so they in turn need information. Newsletters and annual reports are fine but those are often ignored. Nonprofits need to connect with their donors! This connection is a key in the retention of donors and where most nonprofits seem to operate in blissful ignorance.
Nonprofits need to fit in their schedule throughout the year ways to acknowledge their donors both publically and privately. So, what is the most effective way to say thank you?
This is a question that has plagued nonprofits for a very long time. Everyone would like to have the definitive answer as to what works and what does not. Unfortunately, since every donor is different there is no real clear cut answer. Regardless, nonprofits need to make an attempt and buckle down and establish an ongoing program now and not wait until they are doing a capital or planned giving campaign.
What does a plan look like?
A simple approach is to establish a recognition program along with your annual fundraising plan.
First, determine how many times do you want to make contact with your donors and what is the purpose for this contact?
Sidebar: We all have people we know that we only seem to hear from when they need something from us. We know when the phone rings or they show up at our door step it is not for a social visit but for some other alterative motive. You do not want your nonprofit to fall in this category!
For the sake of example let’s say you determine you want to make ten contacts a year to donors that give at a certain level of giving. This might include newsletters, face to face conversations seeking advice, birthday cards and/or special occasion cards like for Thanksgiving as well as sending an actual personalized letter soliciting money to support a specific program area or project. I am not talking about a mass produced letter but a one on one conversation piece.
You may also want to consider having a donor appreciation social, dinner or luncheon. The purpose for this event is to say thank you and to give information on how monies were spent wisely and effectively. Nonprofits may also choose to post a list of donors, unless they wish to remain anonymous, where you offer your program so clients and others can see who supports your cause. Having a newspaper ad thanking donors can also be effective.
Newspaper ads thanking donors are often done after a fundraising event; however, you may find it more effective during Thanksgiving with an ad that might read: In this time of reflection we at X nonprofit want to thank all those who supported us during this year etc. This is helpful especially if you plan on following up with an end of the year ask.
Regardless, in every way possible thank your donors! Mention them everywhere you can. Again, in your newsletter, your annual report, your website, when you stop by to talk thank donors for not just for money but for their advice and valuable time. If you send a card put a hand written note of thanks.
I strongly believe that all nonprofits should consider having at their program location a donor wall system or some display that lists the names of individuals that have contributed to the nonprofit both annually and long term.
There are dozens of companies that sell these types of systems with a wide array of designs. They also offer high tech digital touch screen displays as well, yet personally I would opt for a higher degree of personalization with a warmer feel. I also like the idea of establishing a walk of fame where you have gift bricks with donors, names.
Some may not see the importance of having this outward display. Regardless, if this is not the approach your nonprofit takes you still need to determine how you’re nonprofit can connect with your donor and determine what is being done to ultimately give credit where credit is due.
In short, choosing to do nothing and ignore your donor is the quickest way to loose them!
How a nonprofit treats their donors will have a significant impact on the organization’s ability to raise money and grow.
As a consultant for nonprofits I see way too often donors that are ignored with no plan in place to make them feel special or needed.
The phrase “you’re my friend” is one of the most touted sayings in political circles, especially when a contribution is being pursued. Likewise, when the salutation, “Dear Friend” or “Dear Supporter,” is used by a nonprofit, that in my opinion is impersonal and in some respects insulting! If you want a contribution you have to start by addressing me by my name and treat me like an individual versus someone in line at the drive thru.
How much do you really know about your donor? Have you taken the time to ask them what they like or even dislike concerning your program? How often do you communicate with your donor and NOT ask for money?
All these questions are just the start to building a retention program that works!
As best as I can tell, there are few free programs or informational pages on the internet that really share the practical secrets to help nonprofits retain donors. So, once again, I’ll try to tackle the subject and give you the information you need, NOW!
Why does a donor stop giving? Over 50% of all donors stop giving because of three simple yet profound reasons.
Approximately 25% of donors stop giving because they find another cause they think is more deserving. This begs the question then is your message on point? Is your message consistent? Does it resonate with donors or are you doing something that people really don’t support? Is what you do effective year round?
Unfortunately over 20% of donors that stop giving simply cannot afford to support charities at that time.
Lastly and most amazing is that over 10% have totally forgotten they supported the charity in the first place. This last point for me further emphasizes the fact that if your nonprofit’s method if getting donations is largely based on simple emotional appeals then eventually the well will run dry and people will literally forget you.
The message your nonprofit gives to donors must be one that is lasting and not just tell of a need but helps truly show that with support they can make things better long term. The ultimate goal would be changing or affecting a life forever.
So how do you keep donors happy? First a donor needs to feel appreciated, welcomed and wanted. Likewise, most people that give money want to know the results of their actions so they in turn need information. Newsletters and annual reports are fine but those are often ignored. Nonprofits need to connect with their donors! This connection is a key in the retention of donors and where most nonprofits seem to operate in blissful ignorance.
Nonprofits need to fit in their schedule throughout the year ways to acknowledge their donors both publically and privately. So, what is the most effective way to say thank you?
This is a question that has plagued nonprofits for a very long time. Everyone would like to have the definitive answer as to what works and what does not. Unfortunately, since every donor is different there is no real clear cut answer. Regardless, nonprofits need to make an attempt and buckle down and establish an ongoing program now and not wait until they are doing a capital or planned giving campaign.
What does a plan look like?
A simple approach is to establish a recognition program along with your annual fundraising plan.
First, determine how many times do you want to make contact with your donors and what is the purpose for this contact?
Sidebar: We all have people we know that we only seem to hear from when they need something from us. We know when the phone rings or they show up at our door step it is not for a social visit but for some other alterative motive. You do not want your nonprofit to fall in this category!
For the sake of example let’s say you determine you want to make ten contacts a year to donors that give at a certain level of giving. This might include newsletters, face to face conversations seeking advice, birthday cards and/or special occasion cards like for Thanksgiving as well as sending an actual personalized letter soliciting money to support a specific program area or project. I am not talking about a mass produced letter but a one on one conversation piece.
You may also want to consider having a donor appreciation social, dinner or luncheon. The purpose for this event is to say thank you and to give information on how monies were spent wisely and effectively. Nonprofits may also choose to post a list of donors, unless they wish to remain anonymous, where you offer your program so clients and others can see who supports your cause. Having a newspaper ad thanking donors can also be effective.
Newspaper ads thanking donors are often done after a fundraising event; however, you may find it more effective during Thanksgiving with an ad that might read: In this time of reflection we at X nonprofit want to thank all those who supported us during this year etc. This is helpful especially if you plan on following up with an end of the year ask.
Regardless, in every way possible thank your donors! Mention them everywhere you can. Again, in your newsletter, your annual report, your website, when you stop by to talk thank donors for not just for money but for their advice and valuable time. If you send a card put a hand written note of thanks.
I strongly believe that all nonprofits should consider having at their program location a donor wall system or some display that lists the names of individuals that have contributed to the nonprofit both annually and long term.
There are dozens of companies that sell these types of systems with a wide array of designs. They also offer high tech digital touch screen displays as well, yet personally I would opt for a higher degree of personalization with a warmer feel. I also like the idea of establishing a walk of fame where you have gift bricks with donors, names.
Some may not see the importance of having this outward display. Regardless, if this is not the approach your nonprofit takes you still need to determine how you’re nonprofit can connect with your donor and determine what is being done to ultimately give credit where credit is due.
In short, choosing to do nothing and ignore your donor is the quickest way to loose them!
Thursday, September 3, 2009
Short Cuts... Everyone Wants One In Fundraising!
Some time ago I had a guy call me with this great new fundraising idea he wanted me to help him promote on my website. The scheme was to involve this company getting the nonprofits interested in contacting their donors and convince them to allow a life insurance policy to be taken out on the donor's life, and the beneficiary would be the nonprofit and of course the company selling this product.
Also, neither the nonprofit nor the donor would have to pay anything! This company had somehow gotten an insurance company to agree to this crazy deal as well as a bank to loan the money, I assume based on mortality tables.
Obviously this "great fundraising idea" has been outlawed by most states and the IRS thankfully was all over this one for good reason!
I politely denied being associated with this guy and he could not understand why I didn't want to promote this wonderful fundraising idea! Unbeknownst to the salesman of his idea, I've been dealing with life insurance since I was in my early 20's and my first question right out of the box was how can you prove insurable interest! He was shocked by my question and did not have an answer. Anyway, I passed on this "great offer" like I do on most of these "wonderful" ideas!
Sadly, I think, many nonprofits blindly jump when given the chance to sign up for a program that is touted as, the super secret and the greatest money making deal of the century, instead of doing what they were taught to do in grade school: stop, drop and roll when you find yourself on fire!
Most of these new age snake oil salesmen quickly and easily tell nonprofits that big money is just around the corner if they just do a few simple things! If you ever hear this statement:
"This plan really is the future of fundraising. In just a few weeks you can have a continuous and effortless stream of income 24/7 by just......."
Please folks, politely tell the person, thank you, but you are not interested! You're, after all, a non profit organization that doesn't have the staff or the time to be their sales force and you have enough work of your own to do just to survive!
Most of the common online fundraising concepts I'd seen or heard pitched lately involve the following themes:
The person trying to sell you this great fundraising/money making concept gives you a "free web page;" which most times is a template page with a few fill in the blank sections. All in all these pages are completely worthless because they don't have any unique content and rarely show up
on any search engine. Plus you don't have a specific domain name! However, the sales guy tries to convince you it is so easy to make money this way..... Oh they say: Just tell all your family, friends and donors to go to this page i.e. that promotes or sell their product or service, and you get a percentage by doing nothing. Come on guys!
Obviously the company selling this concept doesn't have the advertising dollars nor does it have the sales force to do the work they want done and that is why they want you! Trust me, it's not about being civic minded or because they have a wonderful love for your nonprofit. It's all hype!
Please ask yourself these questions! Does the product or service that is being sold have any real point of difference or can you find it everywhere? Is this something the consumer really wants? Lastly, is what is being sold something some one, a reasonable person mind you, would be willing to make the effort to buy from you?
To borrow a catch phase: Quality, Value and Convenience! All in all, it has to make good sound logical sense and be hassle free in order to work! Being successful online in selling goods or services only happen when: people want it and you have it at the lowest or at a reasonable price and you have repeated your message of how you can be found over and over so they know where to look!
Another twist to this same concept is the company gets you to place their information on your website and then tells you that you will get paid X percentage when people buy their product or service through your site. Usually there is no third party verification and it's all done on faith that you will get paid for what actually happens through your site. Sometimes the percentage payback is so low on these sales that it take tons of purchases before you ever get the first check, if you ever get one!
Now before I get a lot of flaming emails, and by the way I don't mind agreeing to disagree, I will admit that some affiliate programs do work but they are few and far between and you're not going to get rich doing this!
It's all based off of the web traffic you can generate, how sticky your site is because of your content and it boils down to a numbers game!
Again, let me ask you a simple question:
How many nonprofits are known for their web traffic? Very few!
Finally as I close I want to extinguish another myth that's floating around:
Being on the web is important for most nonprofits; but you have to put all this into perspective!
Establishing a website I think should only be attempted after a nonprofit has established themselves and become relatively stable in their funding. Then and only then, should they consider putting their information on the web. You don't want to have a website that is never updated or has no information in it.
Even before this happens you really first have to ask yourself WHY! Why do we want a website? It can't be for vanity sake or because other nonprofits have one! Secondly, what is the purpose for the website? Who is going to keep the information fresh and updated? Lastly, how are people going to know the site exists? All this has to be a part of your overall marketing plan. If you don't have a marketing plan...then forget the website idea!
Websites can be used as a decent advertising tool letting people know who you are and why you exist. But please folks, don't expect that people will just read your information and think they will be flooding your mail box with checks! Likewise understand that using broadcast emails, faxes and in many cases emailed newsletters can, in some cases, be effective but it will be on a very limited basis!
In general, people don't want to waste their time and the real key is:
If they don't feel personally connected to your nonprofit via face to face time then the chance of them reading your emails, faxes and newsletters I think are slim to none!
Other common fundraising idea involving the nonprofit to becoming the main sales force to promote the seller's product or service involves promoting: credit cards, selling travel services, phone services, electric services and the list goes on and on.
A more localized scheme involves professional fundraising companies who in many cases approach a local older civic group a telling them that they won't have to do anything but make money! This company will fundraise to bring a carnival or circus into town and do all the fundraising by getting sponsors and even donating some seats so the underprivileged children in town can see the show. This is done of course using the civic group's good name. In many cases 70% or more of the money leaves town and the civic group has little to show for the fundraiser that just took place using their name.
Speaking of fundraising! All nonprofits need to establish their own signature fundraising event and do it themselves. It is not easy; no one said life was fair or easy but that is the board's job to help secure the nonprofit's financial stability.
As a consultant I can tell you that there is no one size fits all fundraiser that works everywhere! Nonprofits, however, do have to really focus on the amount of time they can spend and what they net from the event or events they hold.
Many times when I talk to a nonprofit and ask them why they are doing this event it is because they have always done it. Not that they have really analyzed it to see if it was the best and most cost effective thing to do. Also, I think nonprofits from time to time really need to stop and analyze their funding mix i.e. how much money is generated from program fees, local, state or federal government grants, United Way, individual donors, civic groups, local businesses and corporations, foundations and endowments or trusts. If you are relying too much on one source then it is only prudent of you and your board to make an effort to do something different and purpose to making a change!
I you have any questions you can always email me: john@minges.com
Also, make sure you visit my website for more free information:
www.nonprofitexpert.com
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Also, neither the nonprofit nor the donor would have to pay anything! This company had somehow gotten an insurance company to agree to this crazy deal as well as a bank to loan the money, I assume based on mortality tables.
Obviously this "great fundraising idea" has been outlawed by most states and the IRS thankfully was all over this one for good reason!
I politely denied being associated with this guy and he could not understand why I didn't want to promote this wonderful fundraising idea! Unbeknownst to the salesman of his idea, I've been dealing with life insurance since I was in my early 20's and my first question right out of the box was how can you prove insurable interest! He was shocked by my question and did not have an answer. Anyway, I passed on this "great offer" like I do on most of these "wonderful" ideas!
Sadly, I think, many nonprofits blindly jump when given the chance to sign up for a program that is touted as, the super secret and the greatest money making deal of the century, instead of doing what they were taught to do in grade school: stop, drop and roll when you find yourself on fire!
Most of these new age snake oil salesmen quickly and easily tell nonprofits that big money is just around the corner if they just do a few simple things! If you ever hear this statement:
"This plan really is the future of fundraising. In just a few weeks you can have a continuous and effortless stream of income 24/7 by just......."
Please folks, politely tell the person, thank you, but you are not interested! You're, after all, a non profit organization that doesn't have the staff or the time to be their sales force and you have enough work of your own to do just to survive!
Most of the common online fundraising concepts I'd seen or heard pitched lately involve the following themes:
The person trying to sell you this great fundraising/money making concept gives you a "free web page;" which most times is a template page with a few fill in the blank sections. All in all these pages are completely worthless because they don't have any unique content and rarely show up
on any search engine. Plus you don't have a specific domain name! However, the sales guy tries to convince you it is so easy to make money this way..... Oh they say: Just tell all your family, friends and donors to go to this page i.e. that promotes or sell their product or service, and you get a percentage by doing nothing. Come on guys!
Obviously the company selling this concept doesn't have the advertising dollars nor does it have the sales force to do the work they want done and that is why they want you! Trust me, it's not about being civic minded or because they have a wonderful love for your nonprofit. It's all hype!
Please ask yourself these questions! Does the product or service that is being sold have any real point of difference or can you find it everywhere? Is this something the consumer really wants? Lastly, is what is being sold something some one, a reasonable person mind you, would be willing to make the effort to buy from you?
To borrow a catch phase: Quality, Value and Convenience! All in all, it has to make good sound logical sense and be hassle free in order to work! Being successful online in selling goods or services only happen when: people want it and you have it at the lowest or at a reasonable price and you have repeated your message of how you can be found over and over so they know where to look!
Another twist to this same concept is the company gets you to place their information on your website and then tells you that you will get paid X percentage when people buy their product or service through your site. Usually there is no third party verification and it's all done on faith that you will get paid for what actually happens through your site. Sometimes the percentage payback is so low on these sales that it take tons of purchases before you ever get the first check, if you ever get one!
Now before I get a lot of flaming emails, and by the way I don't mind agreeing to disagree, I will admit that some affiliate programs do work but they are few and far between and you're not going to get rich doing this!
It's all based off of the web traffic you can generate, how sticky your site is because of your content and it boils down to a numbers game!
Again, let me ask you a simple question:
How many nonprofits are known for their web traffic? Very few!
Finally as I close I want to extinguish another myth that's floating around:
Being on the web is important for most nonprofits; but you have to put all this into perspective!
Establishing a website I think should only be attempted after a nonprofit has established themselves and become relatively stable in their funding. Then and only then, should they consider putting their information on the web. You don't want to have a website that is never updated or has no information in it.
Even before this happens you really first have to ask yourself WHY! Why do we want a website? It can't be for vanity sake or because other nonprofits have one! Secondly, what is the purpose for the website? Who is going to keep the information fresh and updated? Lastly, how are people going to know the site exists? All this has to be a part of your overall marketing plan. If you don't have a marketing plan...then forget the website idea!
Websites can be used as a decent advertising tool letting people know who you are and why you exist. But please folks, don't expect that people will just read your information and think they will be flooding your mail box with checks! Likewise understand that using broadcast emails, faxes and in many cases emailed newsletters can, in some cases, be effective but it will be on a very limited basis!
In general, people don't want to waste their time and the real key is:
If they don't feel personally connected to your nonprofit via face to face time then the chance of them reading your emails, faxes and newsletters I think are slim to none!
Other common fundraising idea involving the nonprofit to becoming the main sales force to promote the seller's product or service involves promoting: credit cards, selling travel services, phone services, electric services and the list goes on and on.
A more localized scheme involves professional fundraising companies who in many cases approach a local older civic group a telling them that they won't have to do anything but make money! This company will fundraise to bring a carnival or circus into town and do all the fundraising by getting sponsors and even donating some seats so the underprivileged children in town can see the show. This is done of course using the civic group's good name. In many cases 70% or more of the money leaves town and the civic group has little to show for the fundraiser that just took place using their name.
Speaking of fundraising! All nonprofits need to establish their own signature fundraising event and do it themselves. It is not easy; no one said life was fair or easy but that is the board's job to help secure the nonprofit's financial stability.
As a consultant I can tell you that there is no one size fits all fundraiser that works everywhere! Nonprofits, however, do have to really focus on the amount of time they can spend and what they net from the event or events they hold.
Many times when I talk to a nonprofit and ask them why they are doing this event it is because they have always done it. Not that they have really analyzed it to see if it was the best and most cost effective thing to do. Also, I think nonprofits from time to time really need to stop and analyze their funding mix i.e. how much money is generated from program fees, local, state or federal government grants, United Way, individual donors, civic groups, local businesses and corporations, foundations and endowments or trusts. If you are relying too much on one source then it is only prudent of you and your board to make an effort to do something different and purpose to making a change!
I you have any questions you can always email me: john@minges.com
Also, make sure you visit my website for more free information:
www.nonprofitexpert.com
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
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